Fortune Hi-Tech Complaint Could Intensify Scrutiny Of Multilevel Marketers

FTC worked with state authorities in an investigation of multilevel marketer Fortune Hi-Tech that led to a court order shutting down the firm. Meanwhile, nutritional and cosmetic product firm Nu Skin offers a defense against criticism of the multilevel business model after investors target Herbalife.

A federal complaint alleging a “pyramid scheme” by Fortune Hi-Tech Marketing Inc., a multilevel marketer of goods and services including nutritional and beauty products, could intensify investors’ suspicions about Herbalife Ltd., Nu Skin Enterprises Inc. and other supplement firms that use the MLM business model.

The Federal Trade Commission worked with Illinois, Kentucky and North Carolina state authorities in an investigation of Lexington, Ky.-based Fortune Hi-Tech that led to a Jan. 28 temporary restraining order...

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